Athens Georgia Chapter 13 Bankruptcy lawyer
Tax and bankruptcy in Athens Georgia
When you are an individual debtor and have assets besides those you exempt from the bankruptcy estate, you may select to end your tax year on the day before the filing of your bankruptcy petition. Then your tax year is divided into 2 short tax years of fewer than 12 months each. The first year ends on the day before the filing date, and the second year begins with the filing date and ends on the date your tax year generally ends. When you select this choice, you cannot alter it. Any income tax liability for the first short tax year will be an allowable claim as a claim arising before bankruptcy against the bankruptcy estate. When this tax liability is not paid in the bankruptcy proceeding, the liability is not canceled because of bankruptcy and it can be collected from you as an individual.
If you do not decide to end the tax year, then no part of your tax liability for the year in which your bankruptcy case begin can be collected from the estate.
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Athens Georgia bankruptcy lawyer | Bankruptcy attorneys in Athens GA and Athens-Clarke County – Filing for Chapter 7 Bankruptcy and Chapter 13 Bankruptcy
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